Freedom Bank Reports Third Consecutive Year of Profitability in 2012

FAIRFAX, Va.--(BUSINESS WIRE)--The Freedom Bank of Virginia (Bulletin Board:FDVA.OB): finished its
third consecutive year and fifteenth consecutive profitable quarter on
December 31, 2012.

Assets grew to $238,642,144 at December 31, 2012. This was up 14.98%
from $207,557,264 at the prior period. The investment in additional
lending officers resulted in double digit loan growth for the year. New
lenders made a particularly strong contribution in the fourth quarter
with loans to medical professionals. Gross loans increased 11.33% to
$171,901,847 up from $154,407,193 at December 31, 2011. In addition to
strong loan growth, Investment Securities Available for Sale increased
$13,533,997 (89.13%) to $28,717,795 at December 31, 2012.

Deposit growth was strong for the year at 16.05%. Non-interest bearing
deposits increased $9,558,806 (37.64%) to $34,951,109. This growth was
due primarily to the Bank’s strong penetration of the government
contracting market. The Bank has focused on this market for many years
and strong deposit growth in 2012 resulted from this long term effort.
Time deposits increased $29,429,419 (21.55%) to $139,555,489 at December
31, 2012. Part of the strong growth in these areas was reduced by a
decline in interest bearing checking accounts, which dropped $5,071,905
(12.17%) to $36,601,864 during the year.

Net profit declined for the year primarily due to investments the Bank
made in loan growth and improving asset quality. The Bank increased its
lending staff by 80% late in the year. This helped increase loan
production, but also increased compensation expense by $270,000 in the
fourth quarter. The Bank earned a net profit in 2012 of $1,192,000
($0.42 per share), down from $1,900,300 in 2010 ($0.67 per share). Asset
quality improved greatly. Loans on which the Bank is no longer accruing
interest was halved from 2.43% at December 31, 2011 to 1.21% at December
31, 2012. Loans past due for regularly scheduled payments declined from
1.67% at December 31, 2011 to 0.23% at December 31, 2012. Although the
result positioned the Bank well for the coming year, it did require the
Bank to increase the Provision for Possible Loan Losses by $340,200 over
the prior year.

Stockholder’s Equity exceeded $25,000,000 for the first time for the
year ending December 31, 2012. Stockholders Equity was $25,264,084 up
6.61% from $23,697,402 at 12/31/2011. Year end book value per share was
$8.81, up from $8.07 the prior year.

Capital continues to be a strength of the Bank. Regulatory capital
minimums to be considered well capitalized for Tier 1 Leverage Ratio,
Risk Based Capital Tier 1, and Risk Based Capital Tier 2 are 5.0%, 6.0%
and 10.0% respectively. At 12/31/2012 the ratios for the Bank were
11.06%, 13.80% and 15.03% respectively, all in the well capitalized
category. The Bank continues its tradition of maintaining a strong
capital base to serve the needs of its customers and stockholders.

Freedom Bank is a community-oriented, locally-owned bank with locations
in Fairfax and Vienna, Virginia. For information about Freedom Bank’s
deposit and loan services, visit the Bank’s website at www.freedombankva.com.

This release contains forward-looking statements, including our
expectations with respect to future events that are subject to various
risks and uncertainties. Factors that could cause actual results to
differ materially from management's projections, forecasts, estimates
and expectations include: fluctuation in market rates of interest and
loan and deposit pricing, adverse changes in the overall national
economy as well as adverse economic conditions in our specific market
areas, maintenance and development of well-established and valued client
relationships and referral source relationships, and acquisition or loss
of key production personnel. Other risks that can affect the Bank are
detailed from time to time in our quarterly and annual reports filed
with the Board of Governors of the Federal Reserve System. We caution
readers that the list of factors above is not exclusive. The
forward-looking statements are made as of the date of this release, and
we may not undertake steps to update the forward-looking statements to
reflect the impact of any circumstances or events that arise after the
date the forward-looking statements are made. In addition, our past
results of operations are not necessarily indicative of future
performance.